Eternity Law International News Andorra rejects banking secrecy since 2018

Andorra rejects banking secrecy since 2018

Published:
June 11, 2021
Share it:

For many years, banking secrecy was observed in Andorra, there was no VAT with income tax, high-class professional workers worked in the banking area. In Andorra, there was a certain kind and independence in making decisions.

France and Spain are located near Andorra, which is an important advantage for this state.

In the last couple of years, the situation in the country has changed significantly. Andorra has undergone a lot of the demands of the world order. First of all, the threats and demands from the European Union played a role.

And because of this, Andorra began to make concessions to the international community. The first step towards such concessions was the creation of a taxation framework, it introduced ten percent taxation on the income of legal entities and individuals, and 4.5% VAT appeared in Andorra.

But, in general, the country has excellent chances for a significant reduction in tax rates.

Banking secrecy in Andorra

At first, the state agreed to exchange data on bank depositors of the EU countries. This immediately reduced the number of investors from European countries.

To date, the state has not only left its signature on the pages of a multilateral agreement on the exchange of banking information. The country plans to start sharing this information.

Starting in 2018, she plans to collect and forward information about those investors who have more than one million USD in their personal accounts.

It is planned that from 2019, in Andorra, such a concept as “Bank secrecy” will cease to exist. One more state will be included in the list of the state with “total transparency” – albeit regarding the issues of bank depositors.

Andorra is now entering a new stage of its development. Traditional means of attracting customers are already not working enough – moreover, they are in little demand and even quite risky.

New techniques are only at the stage of formation. Andorra may well find its application as a country not only for the preservation of banking assets, but also as a tax residence for individuals.

Features of the legislation when registering a company in Andorra

It is easy to register a company in Andorra. In the summer of 2017, legislation came into force in Andorra, which provides for criminal liability for tax violations.

In case of evasion in the amount of 80-160 thousand euros, the offender can be imprisoned from three months to three years. He also undertakes to pay a fine.

If a person has not only evaded paying taxes, there are other state crimes for him, for example, he “laundered” illegal money, then the prison term can be extended by five years, and the amount of the fine will be increased.

Banking secrecy is an outdated concept. New rules also dictated new requirements. For a minimal offense, the severity of punishment increases. So why provoke a provocation of a system that was launched to collect taxes and fines?

Eternity Law International has extensive practical experience, understands the situation well, so with us you have an individualized high-quality service that will help you solve your own problems and tasks.

You can seek advice and services from our experts.

Table of contents

You could be interested

Green Seal Curacao Casino Company – Near Approval

While regulation changes have been increasing in many jurisdictions, Curacao is one of the smoothest access points for iGaming operators. But, as the industry sorts out the changes the new law brings, some organizations have been given interim Orange Seal status for at least 90 days by regulatory officials/legal authorities as a stopgap measure of...

Obtain a Trust License in the Cayman Islands

An authorization such as trust license Cayman Islands, issued by the jurisdiction’s Monetary Authority, allows organizations to offer a full range of trust services to private and corporate clients. For this category of business in the Caymans, permission to conduct trust activities is important for the establishment of international business, the expansion of corporate interactions...

EMI License in New Zealand

New Zealand, renowned for its breathtaking landscapes and thriving economy, presents an appealing prospect for businesses seeking a global foothold. One vital consideration for companies operating in New Zealand is the acquisition of an EMI (Electronic Money Institution) license. This article will explore the prerequisites, fintech solutions, advantages, bank accounts, payments,  transactions, prices, sale processes,...

Company registration in Liechtenstein

Liechtenstein ranks among the greatest stable and innovative of Europe’s micro-states, attracting innovators who want security, low taxes and entry to the European sector. Despite its diminutive size, it has a first-rate regulatory regime and centuries-old lawful customs. Conducting Company registration in Liechtenstein implies entering a safe-harbour economy, acclaimed for compliance-friendly governance, investor-oriented policy, and...

European Union: Payments regime reform

The European Union (EU) has long been at the forefront of economic integration, fostering collaboration among its member states. As part of its continuous efforts to enhance financial systems and promote seamless cross-border transactions, the EU is undergoing a significant overhaul of its payments regime. This reform aims to address existing challenges, capitalize on technological...

Investment fund in Comoros

The Comoros archipelago, located in the north-west of Madagascar in the Indian Ocean, is a unique location for international business due to its strategic location and developing economy. The dynamic economic climate of the islands is due to a number of macroeconomic factors, including a stable political environment and progressive legislation aimed at attracting foreign...

Related posts

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Fill the blank: